Fixed Deposit Tips for Students and early stage Working Professionals

For a student or a working professional, this is exactly the right time to let your money work to improve your financial stability and security.

Also, it is imperative to start investing at a young age. Opening an FD account is an ideal way to begin the investment journey as one can get assured returns regardless of the market conditions rather than choosing the market-linked products that are risky. Let’s explore why students & working professionals should opt for an FD scheme & investment tips related to it.

Why Invest in Fixed Deposits?

Fixed Deposits (FDs) are a popular investment choice for millions in India, offering a range of benefits that make them an attractive option. Here’s why you should consider investing in Fixed Deposits with AU Small Finance Bank:

• Safe Investment with Assured Returns: Fixed Deposits provide a secure investment avenue, ensuring your principal amount is safe while earning steady returns.
• Competitive Interest Rates: Benefit from high Fixed Deposit interest rates that maximize your earnings.
• Guaranteed Returns: Enjoy assured returns on your deposited amount, providing financial stability and predictability.
• Flexible Investment Horizons: FDs are ideal for both short-term and long-term financial goals, with tenures ranging from as short as 7 days to as long as 10 years.
• Customizable Tenures: Choose the tenure that best fits your financial plans, whether you’re saving for a short-term need or a long-term objective.

Investing in Fixed Deposits with AU Small Finance Bank ensures a reliable and rewarding investment experience, catering to diverse financial goals with safety and attractive returns.

Types of FD

At AU Small Finance Bank, you can choose from various types of FD accounts, depending on your needs:

Regular Fixed Deposit:

• Flexibility to choose interest payouts across monthly, quarterly, or cumulatively at maturity.
• Senior citizens can earn up to 0.5% extra interest and the tenure you choose.
• Avail Overdraft facility by pledging FD as a collateral.

5-year Tax Saving Fixed Deposit (FD):

• Enjoy tax savings up to INR 1.50 lakh annually under Section 80C of the IT Act.
• Senior citizens can earn up to 0.5% extra interest rate on a 5-year tax saver FD on the principal amount and tenure you choose
• Get guaranteed returns on investments

Fixed Deposit Investment Tips for Students & Working Professionals

Let’s look at some of the Fixed Deposit investment tips for students and working professionals:

• Start small, earn big:

As a student and working professional, you can start with an investment amount as low as INR 1,000, whether it is a Regular Fixed Deposit or a 5-year Tax Saving Fixed Deposit account. It helps to begin at a young age as you can earn handsome returns as long as you continue to deposit funds.

• Premature Withdrawals:

There may be a time when a student requires to accumulate fees for higher studies, or a working professional may require funds to pay for EMIs or any other purpose. In such circumstances, one can easily make a premature or partial withdrawal from an FD Account. However, this attracts a penalty, and it is subject to terms and conditions.

• Loan against FD:

With AU Small Finance Bank’s Regular Fixed Deposit account, you can be eligible for an Overdraft Facility. One can pledge their Fixed Deposit as security to avail a loan in return. The loan amount depends on the FD amount.

• Flexible Terms:

Students and working professionals can choose tenure as per their financial requirements. The minimum is 7 days, and the maximum term period is 10 years.

• Tax Exemption:

Working professionals can claim a deduction of up to INR 1.50 lakh under Section 80C of the IT act on the contributions made towards a 5-year Tax Saving Fixed Deposit account.

Students and working professionals can apply for a Fixed Deposit Account & avail the best fixed deposit rates at AU Small Finance Bank. Apply now either through the Video Banking facility, by visiting any nearest AU Small Finance Bank branch, or by calling our customer care on number 1800-1200-1200.